swung to a third-quarter profit, aided by higher sales and expanding margins.
The graphics chipmaker earned $31.9 million, or 12 cents a share, in the quarter, compared with a loss of $400,000 a year ago. Adjusted for items including stock-options expense, ATI earned 16 cents a share in the latest quarter, a penny better than the Thomson First Call consensus estimate.
Third-quarter revenue rose 23% from a year ago to $652.3 million, below the consensus estimate of $661.3 million. By segment, PC revenue rose 8.5% from a year ago to $499.7 million, while consumer revenue rose 120% to $152.6 million. ATI said its gross margin was 30.1% in the latest quarter, up from 29.1% a year ago.
"In a challenging quarter for the PC industry, we delivered on our key operational objectives of gross margin expansion and improved inventory management," ATI said. "With several important PC and graphics processor advances on the way, we see a number of catalysts that will drive continued excitement and growth for ATI and the industry."
For the fourth quarter, ATI expects to post revenue of $620 million to $660 million, short of the Thomson First Call consensus of $698.4 million. The company sees gross margin of 31% to 31.5% in the quarter.
Shares of ATI closed at $15.50 Wednesday. In premarket trading Thursday, shares 40 cents, or 2.6%, to $15.10.